• Miscellaneous >> Halal & Haram

    Question ID: 48206Country: India

    Title: Options trading In Forex market

    Question: I want to ask weather OPTIONS TRADING in forex is halal or not. In options we buy currency at future rates, we don't pay the amount of trade at the time of trade but pay the money when the rate is reached to a desired value or when the date of trade expires. Clearly we book the currency for future rate giving some charge for it, if we see the currency gaining as per our estimation we buy it paying for currency then, but if we see rates not favoring us we simply do not buy it, in this case we don't get those charges back. Please tell me is this type of trading halal or not?

    Answer ID: 48206

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 1275/1004/D=11/1434) If the saman (price) and mabi (goods) both are on credit then it is unlawful. The holy Prophet Muhammad (صلى الله عليه وسلم) has forbidden sale of credit with credit. نهى رسول الله صلى الله عليه وسلم عن بيع الكالى بالكالى (الحديث) Also the method which you have mentioned it is not bai (transaction), rather it appears to be gambling which is haram.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India